U.S. consumer sentiment kept falling in October, according to preliminary data released Friday from the University of Michigan, as households grew more pessimistic about the broader economic outlook.
The widely watched Consumer Sentiment Index has weakened to 46.3 from the final reading of 48.1 in September, missing economists' expectations and falling for a third consecutive month.
The Current Economic Conditions Index dropped to 44.7 from the final reading of 50.9 in September, while the Expectations Index rose to 47.3 from 46.3.
The one-year inflation expectations ticked up from 4.6 percent in September to 4.7 percent in October, substantially exceeding the 3.4 percent seen in February before the Iran conflict began. The five-year inflation expectations also stepped up from 3.4 percent to 3.5 percent. Inflation expectations over both time horizons increased for the second straight month to their highest readings since May.
The survey found that consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year, and frustration over cost-of-living continues to mount.
Overall, sentiment for lower-income consumers and those with smaller stock portfolios dropped steeply this month, groups that have fewer resources to weather increases in prices.
US consumer sentiment continues to fall in October
